Page 2 - TPM Newsletter JAN 2020
P. 2

2                                                                                                                                                                                                               January 2020
         From the President ...                                          Introducing the SECURE ACT

        Welcome to 2020.  The TPM Staff                 V   In late December 2019, President Trump signed into law the
        and I hope you had a wonderful                     Se   ng Every Community Up for Re  rement Enhancement
        holiday season! We are off  and                     Act of 2019 (SECURE Act) as part of the Further Consolidated
        running into the new year with                     Appropria  ons Act, 2020 (H.R. 1865).  The SECURE Act
        exci  ng news.
                                                           introduces the most signifi cant changes to workplace re  rement
        This year the TPM Trust will be                    plans in over a decade.  Some highlights of the Act include:
        implemen  ng an online benefi ts                V   Creates Employer Automa  c Enrollment Tax Credit  - The
        administra  on system called the                   SECURE Act creates a new tax credit of up to $500 per year for
        TPM Trust Employer Portal. Your
                                      Adam Molenda         three years to employers to defray startup costs of new plans
        company’s Trust Contact person
                                        President          that include automa  c enrollment. The credit is also available
        will be able to complete online
        enrollments, termina  ons and changes on-line,     to employers that convert an exis  ng plan to an automa  c
        reducing the need to send in paper forms.   Members   enrollment design. This credit is in addi  on to the startup
        who a  ended TPM’s “Focus on 2020” presenta  on    re  rement plan tax credit (below).
        featuring the new Trust Employer Portal in December
                                                       V   Increases Employer Startup Re  rement Plan Tax Credit  - The
        will be the fi rst par  cipants to be trained in the pro-  U.S. Government off ers a tax credit to off set small business
        cess.  TPM staff  will be contac  ng the par  cipa  ng   re  rement plan startup costs. The SECURE Act increases the
        Trust companies soon to schedule training.
                                                           credit from $500 per year up to $5,000 per year for three years.
        Another new product for TPM Trust par  cipants     The maximum credit is now $15,000 over three years.
        will be Teledoc, available in April 2020. The Teledoc
                                                       V   Increases Late Filing Penal  es  - Under the SECURE Act, the late
        program will allow covered pa  ents to be in touch   fi ling penal  es for Form 5500 are increased to $250 per day,
        with a physician online or via their phone. Much like
        a nurse hotline, but with the ability to see the Doctor   not to exceed $150,000. Also, late fi ling of Form 8955-SSA is
        on screen where he can take care of the pa  ent’s   increased to $10 per par  cipant per day, not to exceed $50,000.
        needs without having to leave home. Being able to   V   Increases Required Minimum Distribu  on (RMD) Age  - A
        off er this to our par  cipants is a great opportunity.    Required Minimum Distribu  on (RMD) Age is required from
        All TPM Trust member companies will need to assist   re  rement plans a  er par  cipants reach a certain age. The
        us in promo  ng the program to their employees.
                                                           SECURE Act increases the RMD age from 70½ to 72. This is
        In the coming weeks, TPM staff  will be reques  ng an   applicable to distribu  ons made a  er December 31, 2019 for
        updated list of par  cipa  ng Trust employees with   individuals who reach 70½ from January 1, 2020 on. Equally
        their emails.  The Trust will send each par  cipant   signifi cant, the SECURE Act enables workers age 70½ and older
        the informa  on so they can setup their own Teledoc   with earned income to contribute to individual re  rement
        account. Feel free to be proac  ve and send a list of   accounts (IRAs). Previously, this was not allowed.
        your company’s enrolled TPM Trust par  cipants’
        emails to Darla Kalloch at dkalloch@tpmrs.com.     V   Introduces Pooled Employer Plans  - The SECURE Act allows
                                                           unrelated employers to band together in pooled employer
        TPM is also modifying its current Employment Law   plans (“PEPs”). By banding together in PEPs, a re  rement plan
        services and adding some Business Law assistance   can scale much larger than it could with only one par  cipa  ng
        for the Execu  ve Management Team at your com-     employer. Scale off ers PEPs the poten  al for reduced
        pany.  If you have a business legal ma  er you need   administra  ve costs and du  es for par  cipa  ng employers.
        assistance with please feel free to contact us.  We are
        always here to assist.                         V   Requires Coverage of Long-term Part Time Employees  - The
                                                           SECURE Act requires employers to include long-  me part-  me
        Once again, welcome to 2020 and we are always      workers in defi ned-contribu  on plans. Eligible employees must
        here to serve our members!
                                                           have at least 500 annual hours of service for three consecu  ve
                                                           years, and be age 21 or older. However, these par  cipants can
         The Newsle  er is not intended nor designed to
         off er legal advice. For addi  onal informa  on about   be excluded from safe harbor contribu  ons, nondiscrimina  on
         Newsle  er topics, please contact TPM. Annual     and top-heavy requirements. Also, excep  ons to this new
         subscrip  on price $195.                          requirement are made for collec  vely bargained plans.
         © 2020 TPM - Timber Products Manufacturers        Previously, part-  me workers could be excluded if they have not
         Associa  on
         951 East Third Avenue, Spokane, WA  99202         worked 1,000 hours in a 12-month eligibility period.
         Phone: (509) 535-4646                         If you have ques  ons, or if you would like to consider
         Toll Free: (877) 535-4646                     implementa  on or changes to your employee re  rement plan,
         E-mail: tpm@tpmrs.com
                                                       contact the TPM offi  ce.
        Timber Products Manufacturers Associa  on
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